New Reporter
28-12-20, 21:32
Unit at Chuan View sold for tidy profit in Nov
It sold for profit of 270% after being held for 15 years; favourable entry timing was key to profit-making deals
Mon, Dec 21, 2020
NISHA RAMCHANDANI
A FAVOURABLE entry timing helped a seller reap the top profit-making transaction by percentage for the month of November as a 1,518 square foot (sq ft) unit at freehold development Chuan View was sold for nearly four times the purchase price.
Located in District 19, the unit at Chuan View was bought for S$520,000 (S$343 psf) in March 2005 and sold for a profit of 270 per cent at around S$1.92 million (S$1,267 psf), according to data from Edmund Tie Research which studied caveats for non-landed private homes with a prior purchase history. These were then ranked as the top profit- and loss-making deals for November by percentage and by quantum.
Based on the holding period of over 15 years, this translated to an annualised profit of 8.7 per cent for the seller.
Commenting on the top five profitable transactions in November, senior director of research & consulting at Edmund Tie & Company, Lam Chern Woon, said: "The eye-watering percentage gains were a function of the favourable entry timing; all properties were initially acquired in 2005 before the market picked up. The properties were all held for just above 15 years with annualised gains of 7.5-8.7 per cent."
As such, all the sellers in the top five saw a tripling of capital values - or more - from their sale. One of those five sellers recorded a HDB address at the time of purchase, suggesting a HDB upgrader.
By quantum, the most profitable transaction in the month of November was a 5,038 sq ft unit on the fourth floor of Nassim Jade.
Four of the top five transactions by quantum were in the Core Central Region, and all five were held for a period of 15 years or more.
"All the properties were purchased during a favourable stage of the property cycle, during 2004/5 or in 1999," highlighted Mr Lam.
The freehold development is located in Nassim Road in District 10 and is near Orchard Road. It was completed in 1997.
The seller racked up a handsome profit of S$6.05 million after selling the unit for S$11.7 million (S$2,323 psf). It was purchased in October 2005 for less than half that price, at S$5.65 million (S$1,122 psf).
Rounding off the top five was a 1,744 sq ft unit at freehold Emerald Apartments at Emerald Hill Road in District 9, which was also among the top five most profitable transactions by percentage.
It was purchased for S$805,000 (S$462 psf) and sold for S$2.88 million (S$1,652 psf), translating to a substantial gain of about S$2.08 million or about 258 per cent.
The seller bought it in July 2005 and held it for over 15 years, which works out to an annualised profit of 8.7 per cent. Completed in 1982, it is close to Somerset MRT station and Anglo-Chinese School (Junior).
In contrast, the top loss-making deal by percentage for the month was a 646 sq ft unit on the ninth floor of 103 year-leasehold development The Scotts Tower in Scotts Road.
It sold for S$1.2 million (S$1,858 psf), nearly half the S$2.22 million (S$3,450 psf) that it was purchased for in January 2012. The annualised loss was 6.8 per cent as the property was held for close to nine years.
Situated in District 9, The Scotts Tower is a five-minute walk to Newton MRT station, and a short walk to Ion Orchard shopping mall.
Of the leading five loss-making transactions by percentage, the top three were located in the Cairnhill/Scotts area and four were in the CCR. However, the holding periods differed, ranging from six years up to 14 years.
Meanwhile, four of the top five loss-making transactions by quantum were either located in the Cairnhill or the Sentosa/Keppel area.
By quantum, the biggest loss-making deal was a 19th floor unit at the freehold development Helios Residences at Cairnhill Circle in district 9.
The 4,629 sq ft unit was purchased for S$14.5 million (S$3,132 psf) in May 2014, but was finally sold for S$8.4 million (S$1,815 psf) resulting in a hefty loss of S$6.1 million or some 42 per cent. The seller held it for over six years, which works out to an annualised loss of 8.1 per cent per year.
Overall, Mr Lam noted that the majority of the profitable transactions are of freehold tenure while more loss-making transactions were of leasehold tenure.
He added: "As the holding period increases, the shortening lease acts as a curb on the price appreciation potential." Still, property investments made at, or close to, the bottom of the market cycle could still rake in "spectacular gains", judging by some of the transactions.
It sold for profit of 270% after being held for 15 years; favourable entry timing was key to profit-making deals
Mon, Dec 21, 2020
NISHA RAMCHANDANI
A FAVOURABLE entry timing helped a seller reap the top profit-making transaction by percentage for the month of November as a 1,518 square foot (sq ft) unit at freehold development Chuan View was sold for nearly four times the purchase price.
Located in District 19, the unit at Chuan View was bought for S$520,000 (S$343 psf) in March 2005 and sold for a profit of 270 per cent at around S$1.92 million (S$1,267 psf), according to data from Edmund Tie Research which studied caveats for non-landed private homes with a prior purchase history. These were then ranked as the top profit- and loss-making deals for November by percentage and by quantum.
Based on the holding period of over 15 years, this translated to an annualised profit of 8.7 per cent for the seller.
Commenting on the top five profitable transactions in November, senior director of research & consulting at Edmund Tie & Company, Lam Chern Woon, said: "The eye-watering percentage gains were a function of the favourable entry timing; all properties were initially acquired in 2005 before the market picked up. The properties were all held for just above 15 years with annualised gains of 7.5-8.7 per cent."
As such, all the sellers in the top five saw a tripling of capital values - or more - from their sale. One of those five sellers recorded a HDB address at the time of purchase, suggesting a HDB upgrader.
By quantum, the most profitable transaction in the month of November was a 5,038 sq ft unit on the fourth floor of Nassim Jade.
Four of the top five transactions by quantum were in the Core Central Region, and all five were held for a period of 15 years or more.
"All the properties were purchased during a favourable stage of the property cycle, during 2004/5 or in 1999," highlighted Mr Lam.
The freehold development is located in Nassim Road in District 10 and is near Orchard Road. It was completed in 1997.
The seller racked up a handsome profit of S$6.05 million after selling the unit for S$11.7 million (S$2,323 psf). It was purchased in October 2005 for less than half that price, at S$5.65 million (S$1,122 psf).
Rounding off the top five was a 1,744 sq ft unit at freehold Emerald Apartments at Emerald Hill Road in District 9, which was also among the top five most profitable transactions by percentage.
It was purchased for S$805,000 (S$462 psf) and sold for S$2.88 million (S$1,652 psf), translating to a substantial gain of about S$2.08 million or about 258 per cent.
The seller bought it in July 2005 and held it for over 15 years, which works out to an annualised profit of 8.7 per cent. Completed in 1982, it is close to Somerset MRT station and Anglo-Chinese School (Junior).
In contrast, the top loss-making deal by percentage for the month was a 646 sq ft unit on the ninth floor of 103 year-leasehold development The Scotts Tower in Scotts Road.
It sold for S$1.2 million (S$1,858 psf), nearly half the S$2.22 million (S$3,450 psf) that it was purchased for in January 2012. The annualised loss was 6.8 per cent as the property was held for close to nine years.
Situated in District 9, The Scotts Tower is a five-minute walk to Newton MRT station, and a short walk to Ion Orchard shopping mall.
Of the leading five loss-making transactions by percentage, the top three were located in the Cairnhill/Scotts area and four were in the CCR. However, the holding periods differed, ranging from six years up to 14 years.
Meanwhile, four of the top five loss-making transactions by quantum were either located in the Cairnhill or the Sentosa/Keppel area.
By quantum, the biggest loss-making deal was a 19th floor unit at the freehold development Helios Residences at Cairnhill Circle in district 9.
The 4,629 sq ft unit was purchased for S$14.5 million (S$3,132 psf) in May 2014, but was finally sold for S$8.4 million (S$1,815 psf) resulting in a hefty loss of S$6.1 million or some 42 per cent. The seller held it for over six years, which works out to an annualised loss of 8.1 per cent per year.
Overall, Mr Lam noted that the majority of the profitable transactions are of freehold tenure while more loss-making transactions were of leasehold tenure.
He added: "As the holding period increases, the shortening lease acts as a curb on the price appreciation potential." Still, property investments made at, or close to, the bottom of the market cycle could still rake in "spectacular gains", judging by some of the transactions.